I am curious to hear how various teachers decide on when and how much to increase their fees. I seem to remember Robin Keehn mentioning a particular percentage she uses when raising her rates. In the U.S. the rate of inflation is currently between 2 and 3%. So I’m guessing that’s a good place to start.
Also if anyone has found an eloquent way to communicate your fee increase to parents, I would love to get a sense of the wording you use.
I’ve increased my tuition fee for shared lessons roughly 4% per year so far. I usually send out an email to all students about fee increase at the beginning of the year. It’s stated in the policy so if anyone forgets I simply remind them to refer to it.
Another way to increase your fee without having to increase the fee is to give yourself more time off. You could one or both. My holiday time off has increased from four weeks to currently seven weeks.
Tying your increase to the inflation rate is a good place to start. That at least keeps you from effectively making less money each year. If you want to give yourself a raise, you need to add on to that a little. I do that every few years because I work hard at being a better teacher as I go along. No one but me can give me a raise!
I think changing your tuition rate annually is a good idea. That way you can make smaller changes that are usually not even remarked on by your families, rather than a big jump periodically that might lose you students.
I also raise mine a little every year, either by actually increasing fees or by taking an extra week of vacation. I have it in my policies as well.